Air conditioner maker Carrier Q3 revenue rises on data center demand, raises FY outlook

Overview

• Climate and energy solutions firm's Q3 revenue rose 12% and organic sales grew 15% yr/yr

• Adjusted EPS for Q3 rose 30% yr/yr

• GAAP loss driven by $3.1 bln goodwill impairment charge in Europe unit

Outlook

• Carrier raises 2026 sales guidance to $23.8-$24.0 bln from about $23 bln

• Carrier expects 2026 adjusted EPS of $2.85 to $2.90

• Company says macro pressures, including tariffs and input costs, remain a concern

Result Drivers

• STRONG DEMAND - Carrier said Q3 results were driven by robust demand, especially in data centers, leading to a record backlog

• VOLUME AND PRICING - Co attributed margin expansion to higher volumes and improved pricing, partly offset by increased input costs and tariffs

• OPERATING PROFIT AND SHARE COUNT - Carrier said higher operating profit and a reduced share count contributed to adjusted EPS growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Carrier Global Corporation is $73.56, about 30.7% above its October 28 closing price of $56.27

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Oct 28 - Vertiv beats Q3 revenue, profit estimates; raises FY guidance

• Oct 27 - Watsco Q3 revenue slightly beats on acquisition boost

• Oct 28 - Lennox Q3 revenue misses on competitive pressure, inflation

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)